The Hackett Group Announces Second Quarter 2018 Results
Aug. 07, 2018
MIAMI--(BUSINESS WIRE)--Aug 7, 2018--The Hackett Group, Inc. (NASDAQ: HCKT), a global intellectual property-based strategic consultancy and leading enterprise benchmarking and best practices digital transformation firm, today announced its financial results for the second quarter, which ended on June 29, 2018.
Q2 2018 net revenue (gross revenue less reimbursable expenses) was $69.6 million, up 3% from the same period in the prior year. Q2 2018 gross revenue was $75.6 million, up 3% from the same period in the prior year.
Q2 2018 pro forma diluted earnings per share were $0.27, up 8% when compared to $0.25 for the same period in 2017. Pro forma information is provided to enhance the understanding of the Company's financial performance and is reconciled to the Company's GAAP information in the accompanying tables.
GAAP diluted earnings per share were $0.36 for the second quarter of 2018, as compared to $0.15 in the second quarter of 2017. During the second quarter of 2018, the Company recorded a $4.6 million, or $0.14 per diluted share, benefit due to the remeasurement of an acquisition earnout liability. During the second quarter of 2017, the Company recorded acquisition related restructuring of approximately $0.04 per diluted share.
At the end of the second quarter of 2018, the Company’s cash balances were $13.3 million. During the quarter, the Company utilized cash to pay down outstanding debt of $5.5 million. During the second quarter of 2018, the Company did not repurchase shares under its stock repurchase program. As of the end of the second quarter of 2018, the Company’s remaining stock repurchase program authorization was $7.2 million.
“We continued to report solid operating results due to strong digital transformation, cloud and analytics demand, while continuing to transition our Oracle business from on-premise to cloud implementations,” stated Ted A. Fernandez, Chairman and CEO of The Hackett Group. “With Oracle Cloud revenue now exceeding our on-premise revenue and with cloud growth outpacing the on-premise decline, we are getting closer to seeing the revenue growth fully reflected in our results.”
Based on the current economic outlook, the Company estimates total net revenue for the third quarter of 2018 to be in the range of $67.0 million and $69.0 million or gross revenue (inclusive of reimbursable expenses) to be in the range of $73.0 million and $75.0 million. The Company estimates pro forma diluted earnings per share for the third quarter of 2018 to be in the range of $0.26 and $0.28. At the high end of guidance, pro forma diluted earnings per share for the third quarter of 2018 would increase 8%, when compared to the same period in the prior year.
Procurement Key Issues Research – The Hackett Group issued new Key Issues Research showing that procurement organizations have significantly shrunk the capability gap in digital transformation over the past year, with two thirds now having a strategy in place and nearly half having the resources and competencies needed to execute. Procurement leaders expect to rely on digital transformation to help them achieve an array of critical objectives in 2018, including cost-cutting, improving agility, and improving their ability to serve as a trusted advisor to the enterprise.
ADP Relationship Expansion - The Hackett Group and ADP announced a further expansion to their strategic alliance that will offer large companies (those with 1000+ employees) using ADP Enterprise HR ®, ADP Vantage HCM ®, and ADP Workforce Now ® access to The Hackett Group’s advisors, best practices, metrics, research, and tools. These offerings are aimed at helping large organizations improve human capital management (HCM) performance, the efficiency and effectiveness of their HR operations and strategic impact to help drive enterprise results.
Oracle Cloud Excellence Implementer Program - The Hackett Group, a Cloud Premier and Platinum level member of Oracle PartnerNetwork (OPN), announced it has joined the Oracle Cloud Excellence Implementer (CEI) program and has achieved CEI status for six Oracle Cloud applications in North America, including Oracle Enterprise Planning and Budgeting Cloud, Oracle Financial Consolidation and Close Cloud, Oracle Financials Cloud, Oracle Global Human Resources Cloud, Oracle Benefits Cloud, and Oracle Talent Management Cloud.
2018 Digital Awards Launch – The Hackett Group began accepting applications for its 2018 Digital Awards, which recognizes leaders in RPA, intelligent data capture, cognitive automation, advanced analytics, and other areas. Applications are being accepted until August 15 at this link: http://go.poweredbyhackett.com/7bnm
On Tuesday, August 7, 2018 senior management will discuss second quarter results in a conference call at 5:00 P.M. ET. The number for the conference call is (800) 593-0486, [Passcode: Second Quarter]. For International callers, please dial (517) 308-9371.
Please dial in at least 5-10 minutes prior to start time. If you are unable to participate on the conference call, a rebroadcast will be available beginning at 8:00 P.M. ET on Tuesday, August 7, 2018 and will run through 5:00 P.M. ET on Tuesday, August 21, 2018. To access the rebroadcast, please dial (866) 424-7877. For International callers, please dial (203) 369-0866.
In addition, The Hackett Group will also be webcasting this conference call live through the StreetEvents.com service. To participate, simply visit http://www.thehackettgroup.com approximately 10 minutes prior to the start of the call and click on the conference call link provided. An online replay of the call will be available after 8:00 P.M. ET on Tuesday, August 7, 2018 and will run through 5:00 P.M. ET on Tuesday, August 21, 2018. To access the replay, visit www.thehackettgroup.com or http://www.streetevents.com.
About The Hackett Group
The Hackett Group (NASDAQ: HCKT) is an intellectual property-based strategic consultancy and leading enterprise benchmarking and best practices digital transformation firm to global companies, offering digital transformation including robotic process automation and enterprise cloud application implementation. Services include business transformation, enterprise analytics, working capital management and global business services. The Hackett Group also provides dedicated expertise in business strategy, operations, finance, human capital management, strategic sourcing, procurement and information technology, including its award-winning Oracle and SAP practices.
The Hackett Group has completed more than 15,200 benchmarking and performance studies with major corporations and government agencies, including 97% of the Dow Jones Industrials, 89% of the Fortune 100, 87% of the DAX 30 and 59% of the FTSE 100. These studies drive its Best Practice Intelligence Center ™ which includes the firm's benchmarking metrics, best practices repository and best practice configuration guides and process flows, which enable
The Hackett Group’s clients and partners to achieve world-class performance.
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and involve known and unknown risks, uncertainties and other factors that may cause The Hackett Group's actual results, performance or achievements to be materially different from the results, performance or achievements expressed or implied by the forward-looking statements. Factors that impact such forward-looking statements include, among others, the ability of our products, services, or offerings mentioned in this release to deliver the desired effect, our ability to effectively integrate acquisitions into our operations, our ability to retain existing business, our ability to attract additional business, our ability to effectively market and sell our product offerings and other services, including these referenced above, the timing of projects and the potential for contract cancellations by our customers, changes in expectations regarding the business consulting and information technology industries, our ability to attract and retain skilled employees, possible changes in collections of accounts receivable due to the bankruptcy or financial difficulties of our customers, risks of competition, price and margin trends, foreign currency fluctuations, changes in general economic conditions and interest rates, our ability to obtain debt financing through additional borrowings under an amendment to our existing credit facility as well as other risks detailed in our Company's Annual Report on Form 10-K for the most recent fiscal year filed with the Securities and Exchange Commission. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
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